Realty Mogul has a nice guide on Due Dilligence and Paul Moore's book the Perfect Investment I found to be very informative and gives a general overview of the industry


https://www.realtymogul.com/knowledg...state-sponsors

https://www.amazon.com/dp/B01M0UDZ4D...2QV8JR4TR3XS38

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Short Answer...
Buy multifamily with debt or invest with a syndicator who does. In the beginning, focus on cash flowing property not speculative developments or appreciation gambles. Cash flow is your lifeline, appreciation is a bonus. Read books, listen to podcasts and network with other investors.

Long Winded Addons...
It's no secret my favorite monetary investment is cash flowing real estate with smart use of leverage. I've gone anywhere from 5% down up to all cash. The all cash acquisitions get rehabbed then leveraged. All of my income producing real estate has debt. When there is an opportunity to refinance at better terms or get cash out for another investment, do it. "Don't wait to buy real estate, buy real estate and wait." -Jason Hartman. Just a couple years of inflation on rents will boost your cash flow. It also destroys the real value of the debt. While you are paying 3-4% interest on the debt, inflation is reducing the real value, so the money is "free".

The other, more valuable resource you are investing is your time. Spend it getting a good education from reading, listening to podcasts and networking with other real estate investors. The easy button here is dropping $200 on a Lifestyles Unlimited basic membership and doing the online education. The two day seminar includes a soft sell on the upgraded memberships. Some of my favorite podcasts are Jason Hartman, Del Walmsley, Bigger Pockets and Old Capital. The Rich Dad series has several excellent books to read if you haven't already, read Rich Dad Poor Dad, then Cashflow Quadrant.

*Disclaimer, I sprung for the upgraded Lifestyles Unlimited membership because of access to successful syndicators who follow a strict code of conduct. Much like joining a country club, the membership fee is to keep people out, not get them in.

I'd recommend looking for local REIAs and networking. I've found several in Texas with a WIDE range of members. I've run across some that are run by a local guru who will teach you how to use his law firm to owner finance absolute 5hit h01es. Others proclaim to teach you all 1000 ways to make money in real estate so you can profit in any market. Another was filled with skilled professionals including a high percentage of millionaires. Quest IRA has virtual networking events for people who are looking to invest with self directed IRA funds also. Also consider joining the local or state chapter of the National Apartment Association. It is a great educational resource even for single family investors.

As a very basic general guideline if you are starting with <100K, a great option is single family rentals. You can get into a single family rental for as little as 20k out of pocket in several markets. A common theme among the podcasters I've mentioned is "live where you want, invest where it makes sense". There are several turn key providers of single family homes including Jason Hartman or Mid Coast Properties among many others. I know of several investors in single family homes who have never seen the houses they own or only visited them once or twice during purchase and rehab. Do a credit check and criminal background check on everyone over 18 in the property. You MUST verify income for the person(s) paying the rent. I repeat, screen your tenants! Poor tenant screening was a precursor to almost every landlord horror story ever told.

If the goal is building equity, starting with a house in need or repair is a great option. The transaction costs are higher, but so is the ROI. Buy a distressed property with a hard money loan that may even include funds for rehab. Once rehabbed and rented, refi into a 30yr conventional note and let the tenant pay the mortgage. The house should provide $200-$400 monthly cash flow above the PITI costs. If not, pass and look for a different deal. This is typically the route requiring the lowest amount of capital, but you are competing with many other investors and often miss out on deals by hours or in some cases by minutes. Look for the BRRR method on Bigger Pockets or just follow along on Day 1 of the Lifestyles Unlimited program.

When you get to 100K+ or if starting there, you have the choice of becoming a direct investor in a larger property or a passive investor in multiple syndications. Do yourself a favor and get a good financial education on how real estate works. As a direct investor, you can either self manage or hire a management company. At this level of investing you can acquire net leased properties like a medical office, a warehouse or a retail strip center. Check out Loopnet or Crexi to get an idea of what is available, but realize most of the good deals are from brokers you have an existing relationship with. As far as syndications, there are crowdsourced options like Crowdstreet and Equitymultiple as well as non advertised offerings like those in Lifestyles Unlimited or from a syndicator you meet at local networking events. These offerings are made under SEC Reg D 506c and eat up lots of money for fundraising efforts. I prefer SEC Reg D 506b offerings, because they aren't advertised. You have to know the syndicator to get invited in. 506b offerings also offer a way for non-accredited investors to get in.

Thanks very much for the time and info. I’ll be looking into the resources you offered for reading and podcasts.

Any of you real estate moguls doing a self directed ROTH IRA and buying property?

I have gone as far as researching a few custodians, but haven't set up an account for investing. It works well if you are investing passively in syndications, but not as well for independent investments like houses or small apartments. Quest IRA is one custodian worth looking at. The fees seemed reasonable and they cater to real estate investors.

I have no idea what ya'll are talking about with 'syndications'.

I know one guy that has his ROTH completely in real estate. If I could talk my wife into it that is EXACTLY what I would do. He uses Utah bank. It is a 'checkbook' IRA as I understand it. Basically they offer nothing other than paperwork to keep you legal which is perfect. ALso There is NuView IRA which does a similar thing. I'll look at Quest, thanks for that...

it’s a bit of a hassle with SFH, since you can’t do any of the work yourself (legally) and are forced into being very hands-off, but it has its place. I use pacific premier trust and they have been a pretty easy custodian.

Good article explaining syndications
Short excerpt, but the full article is worth a read...

What is a syndication? In simple words, it is a deal between a sponsor and the passive investors. A sponsor on the deal is the person with relevant experience in the field who finds a suitable project for the investor and finalizes the deal. The investor can be an individual or a group. If you are the investor, your only job is to analyze the project and conclude whether to invest or not.

As OOfff said, a self directed IRA is better suited to passive investments. Investing in a single family house with a checkbook IRA is flirting with an IRS disaster.

What kind of disaster do you foresee one would be flirting with?

Taxes and prohibited transactions are the potential landmines.

If you can explain UBIT and IRC 4975, you are probably safe. If either of these are unfamiliar, learn them both well enough to teach them before setting up a SDIRA.